The CESA is a useful vehicle for saving for "qualified education" expenses. CESAs are designed to encourage early and consistent savings by offering a convenient way for families to save for college. Merchants State Bank offers a no-fee CESA.

Benefits of the CESA include:

All money grows federal and state income-tax free.

All withdrawals for qualified higher education expenses are exempt from federal income tax.

The beneficiary can be changed at any time to another member of the beneficiary's family.

Make regular contributions through automatic transfers from any Merchants State Bank Checking or Savings account.

$2,000 maximum annual contribution limit.

Merchants State Bank would like to help you plan for college. See our rates page for current rate.